Indices in Canada’s largest centre fell at the opening bell on Monday, as investors shied away from riskier assets on mounting concerns over the economic fallout from the coronavirus outbreak, despite expectations of a global monetary stimulus.
The TSX Composite Index declined 59.53 points to begin Monday at 16,203.52, after a loss last week of nearly 1,700 points, or 9.5%
The Canadian dollar inched higher 0.1 cents to 74.69 cents U.S.
Prime Minister Justin Trudeau, in his first major climate change speech this year, will reach out on Monday to businesses, indigenous groups and citizens for help in defining his ambitious plan to cut carbon emissions.
Federal authorities on Sunday reached a tentative deal with an indigenous group in the Pacific province of British Columbia that could end solidarity protests across Canada that have been blocking rail lines and roads for weeks.
AJN Resources has scrapped a plan to purchase a 10% stake in Congo's biggest gold mine from state-owned gold firm SOKIMO, buckling under pressure from Barrick Gold, the operator and 45% stakeholder of the Kibali mine which opposed the deal.
Shares in Barrick, the world’s largest gold company, moved higher 17 cents to $25.77.
Canadian National Railway has started calling back many of the 450 workers it laid off earlier this month in eastern Canada, when blockades crippled operations on strategic rail lines, according to a company email sent to customers on Friday. CN shares settled $1.64, or 1.4%, to $112.15.
National Bank of Canada raised the target price on Altagas to $26.00 from $25.00. Altagas gained 42 cents, or 2.1%, to $20.49.
National Bank of Canada raised the target price Newmont to $75.00 from $66.00. Newmont shares picked up $1.80, or 3%, to $61.00.
Canaccord Genuity cut the target price on Onex Corp. to $94.00 from $97.00. Onex chugged ahead $1.22, or 1.6%, to $76.58.
On the economic front, at 51.8 in February, up from 50.6 in January, the seasonally-adjusted IHS Markit Canada Manufacturing Purchasing Managers’ Index (PMI) registered above the 50.0 no-change value for the sixth consecutive month and pointed to the strongest overall improvement in business conditions since February 2019.
ON BAYSTREET
The TSX Venture Exchange recovered 6.79 points, Monday to 504.40, after a disastrous week in which the index doffed nearly 85 points, or 14.6%.
Seven of the 12 TSX subgroups were lower to begin the day, with energy shedding 1.7%, health-care down 1.3%, and consumer discretionary off 1.1%.
The five gainers were led by gold, ahead 1.2%, while real-estate and communications each progressed 0.7%.
ON WALLSTREET
Stocks rose on Monday in volatile trading as Wall Street tried to rebound from its worst week since the financial crisis amid fears of the coronavirus outbreak.
The Dow Jones Industrials jumped 120.89 points to open the week and the month at 25,530.25.
The broader S&P 500 gained 5.86 points to 2,960.08.
The tech-heavy NASDAQ took on 22.83 points to 8,590.20.
Stocks came off their highs after a key measure on the U.S. manufacturing showed a slowdown last month. The Institute for Supply Management manufacturing index fell to 50.1 in February, the lowest level since the end of 2019. Any reading above 50 signals an expansion.
Apple shares led the Dow higher with a 3.6% jump. Microsoft and Visa both traded more than 2% higher. Tech was the best-performing S&P 500 sector, gaining 1.6%.
Monday’s early gains masked the volatile overnight session where Dow futures traded in a range of more than 1,000 points, indicating this week may be as volatile as last week as well.
The Dow, S&P 500, and NASDAQ Composite all fell more than 10% last week, their biggest weekly declines since October 2008. They also entered correction territory, down more than 10% from all-time highs notched earlier in February. Both the Dow and S&P 500 have fallen for seven straight days.
As of Sunday, more than 89,000 cases have been confirmed around the world along with more than 3,000 virus-related deaths. Australia, Thailand and the U.S. reported over the weekend their first coronavirus-related deaths. Rhode Island was the first U.S. state on the East Coast to report a coronavirus case.
The number of cases in England rose to 35 after 12 new cases were confirmed on Sunday. Cases in China also reported more than 500 new cases on Saturday. New York Gov. Andrew Cuomo confirmed Sunday night the state’s first positive coronavirus case.
Prices for the 10-Year U.S. Treasury gained sharply, dropping yields to 1.07% from Friday’s 1.19%. Treasury prices and yields move in opposite directions.
Oil prices surged $1.07 to $45.83 U.S. a barrel.
Gold prices $34.00 to $1,600.70 U.S. an ounce.
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